Both the joint venture agreement and the cabin assembly contract stem from a MOU signed in Feb 2007 by the companies to explore the creation of aerospace operations in India. The cabin assembly contract signed in June 2009 has led to ongoing construction in Hyderabad, in the state of Andhra Pradesh, where TASL will assemble S-92 helicopter cabins starting in 2010. 

The new joint venture will be positioned to manufacture components for other aerospace Original Equipment Manufacturers (OEMs) as well as detailed parts for the Sikorsky S-92® helicopter cabin. It is expected that the joint venture operations will be housed in a second greenfield facility that will be constructed in Hyderabad, next to the cabin assembly building. Construction for the joint venture company's facility is targeted for completion by 2011, with production beginning in late 2012.

Tata companies operate in seven business sectors: communications and information technology, engineering, materials, services, energy, consumer products and chemicals. They are, by and large, based in India and have significant international operations. The total revenue of Tata companies, taken together, was $70.8 billion in 2008-09, with 64.7% of this coming from business outside India, and they employ around 357,000 people worldwide.
 
United Technologies provides high technology products and services to the building systems and aerospace industries worldwide. Operating units include businesses with operations throughout the world. Otis, Carrier and UTC Fire & Security (collectively referred to as the commercial businesses) serve customers in the commercial and residential property industries worldwide; Carrier also serves commercial, industrial, transport refrigeration and food service equipment customers.

Pratt & Whitney, Hamilton Sundstrand and Sikorsky (collectively referred to as the aerospace businesses) primarily serve commercial and government customers in both the original equipment and aftermarket parts and services markets of the aerospace industry; Hamilton Sundstrand and Pratt & Whitney also serve customers in certain industrial markets. Major competitor is Boeing Co. (BA).
 
We currently have a Neutral recommendation on UTX.

DuPont sales in emerging markets have grown by 80% in the past five years at a compound annual growth rate (CAGR) of 16% and accounted for nearly one-third of the company's $30.5 billion sales in 2008. While 2009 emerging market sales estimates are expected to drop about 10% from $9 billion in 2008, the company projects 2012 emerging market sales of about $13 billion.

DuPont’s sales in China grew at a CAGR of 14% over the last five years. Sales in 2008 were about $1.7 billion. The company expects solar and light-weight vehicle technologies to help growth in China. The company is currently a major supplier to the crystalline silicon solar cell and module market with products including DuPont(TM) Tedlar PV 2000 and 2100 series, Solamet metallization pastes and Elvax encapsulant resins. DuPont recently launched a Photovoltaic Technology Center at the DuPont China R&D Center in Shanghai to provide local technical support and product innovation.

DuPont materials also are critical to next generation thin film photovoltaic modules for large-scale commercial and utility applications and building integrated installations. The company launched a thin film photovoltaic subsidiary in Shenzhen to focus on amorphous silicon thin film modules, which will become operational later this year.

In India, DuPont’s business expanded at a CAGR of 14% over the last five years with revenues of nearly $500 million in 2008. In terms of growth rate, India is the fourth largest economy in the world, growing in the high single digits. Recently, the company opened a global R&D center in Hyderabad. Paints from DuPont Performance Coatings that can be applied to metal and plastic as well as polymer light weighting materials, including DuPont(TM) Viton elastomers, are the DuPont materials used in the recently launched Tata Nano vehicle in India.

Meanwhile, DuPont has been able to cut $600 million by way of costs so far this year, part of a previously announced plan to trim $1 billion of costs in 2009. We maintain our Neutral recommendation on the stock.

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